Now that the Utilities Regulation and Competition Authority (URCA) has licensed new cellular mobile network operator and service provider NewCo2015 Limited (NewCo), the operator must launch its cellular mobile services by October 2016. NewCo will do this under the management and control of Cable Bahamas Ltd. (CBL), and its network must cover 99 percent of New Providence and 80 percent of Grand Bahama by that deadline.
The company has until the end of this week, July 14, to fork over an $18.2 million performance bond to guarantee it fulfills its license obligations.
The clock started ticking on June 30, 2016, when URCA issued NewCo an individual operating license (IOL), authorizing the operation of an electronic communications network and provision of carriage services. Along with this, URCA issued an individual spectrum license (ISL), authorizing the use of specific allocations of premium radio spectrum. Both licenses have been awarded for a term of 15 years, until June 29, 2031.
Cable Bahamas has paid the $62.5 million spectrum license fee. Meanwhile, documents of incorporation and information regarding the board, management and regulatory contacts for NewCo have been submitted, and business license and value-added tax (VAT) registration have been completed. CBL has a 48.25 percent shareholding in NewCo as well as board and management control of NewCo. The remaining 51.75 percent of NewCo's shares are owned by a government-owned special purpose holding company known as HoldingCo2015 Limited.
The move marks the capstone of a process that began on November 13, 2014 when the Christie administration issued a request for proposals (RFP) for operating a cellular mobile network and providing cellular mobile services in The Bahamas. The selection process was coordinated by the Cellular Liberalisation Task Force appointed by the minister with responsibility for the electronic communications sector (the prime minister).

License requirements
In accordance with the IOL and ISL, NewCo must roll out cellular mobile services across The Bahamas according to a strict timeline. As indicated, within three months NewCo must launch its cellular mobile services and its cellular mobile network must cover 99 percent of New Providence and 80 percent of Grand Bahama.
Within a year, in addition to Grand Bahama, Eleuthera, Abaco, Bimini, Andros, Exuma (including Black Point, Little Farmers Cay, Staniel Cay and Stocking Island), Cat Island, Long Island, San Salvador, Berry Islands, Inagua and Ragged Island must be covered.
Within two years, Acklins, Crooked Island, Long Cay, Rum Cay and Mayaguana must be covered, plus 80 percent of each of the remaining Exuma Cays.
Said URCA, "The percentage coverage requirements set out means that NewCo will have to ensure that reliable service is available in that percentage of the places on the specific islands, where persons habitually live and traverse."

Service quality
URCA notes that NewCo's ISL also requires that its cellular mobile network achieves mobile broadband data service with a sustained downlink speed of not less than 5 megabytes per second (Mbps) when that network is lightly loaded.
The license also requires, in regards to network availability, data broadband session availability of 99 percent and voice broadband session availability of 99.9 percent.
NewCo is also required to meet call completion rate targets: an average monthly completion rate across all cell sites of greater than 99 percent, an average monthly completion rate at the busiest cell site on each island greater than 95 percent, and an average monthly completion rate for each cell site of greater than 75 percent.
With respect to dropped calls, NewCo's mandated targets are an average monthly dropped call rate of less than one percent, average monthly busy hour dropped call rate of less than two percent and average monthly dropped call rate for the hour with worst performance of less than three percent.

Bond
URCA is empowered under the Communications Act to penalize NewCo for failure to meet its license obligations. The regulator added that NewCo's performance with respect to its license obligations will be secured by a performance bond in the total amount of $18.2 million, to be submitted to URCA within 14 calendar days of the licenses being granted.
"URCA has already commenced consultations on key regulatory and other measures required to ensure a fair and level competitive playing field in the cellular mobile market in The Bahamas, and will continue to engage with all stakeholders to that end.
"URCA is excited that the ECS (electronic communications sector) in The Bahamas has achieved this important milestone in the development of competition, and is optimistic that competition in the cellular mobile sector will bring measurable benefits to all consumers of electronic communications services and will boost the economic and social development of the country as a whole," the regulator said.

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